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HomeMy WebLinkAboutNo. 0268 authorizing sale, issuance, delivery of project notes in the aggregate principal amount of $1,120,000 and execution of Requisition Agreement No. 1 for LaSalle Park Project IND R-57WHEREAS, t1 the "Local together wJ thereof, az (herein ca] Local Issui and RESOLUTION NO. 268 RESOLUTION AUTHORIZING THE SALE, ISSUANCE AND DELIVERY OF PROJECT NOTES IN THE AGGREGATE PRINCIPAL AMOUNT OF $1,120,000 AND THE EXECUTION OF REQUISITION AGREEMENT NO. 1, FOR THE LASALLE PARK PROJECT, IND. R -57 City of South Bend, Department of Redevelopment (herein called Cssuing Agency ") has entered into one or more contracts (which, :h any supplements thereto or amendments or waivers of any provisions herein called the "Contract ") with the United States of America Led the "Government ") providing for a loan by the Government to the ig Agency for financing the urban renewal, low -rent housing or it project!(s) described in the Contract and herein called the "Project "; WHEREAS, pursuant to advertisement for the receipt of proposals for the purchase of the First Series 1969 of Project Notes (herein sometimes called "New Project Notes ") of the Local Issuing Agency aggregating $1,120,000, which appeared in a Notice of c.ale published on June 19, 1969, in the South Bend Tribune in the City of South B nd, Indiana and in the Daily Bond Buyer in the City of New York, New York, proposals for the purchase of the New Project Notes in the form approved by the Local Issuing Agency were received, opened, and canvassed at the time and place mentioned in said advertisement, to wit: at 120 West LaSalle Avenue, Suite 1001 in the City of South Bend, Indiana 46601 at one o'clock P.M. E.D.S.T., July 8, 1969, which proposals are as follows: Bi der Interest Rate National B nk and Trust Company of South Bind 5.18% Bank of Am rica, N'_T. & S.A. and First Nati nal City Bank 5.80% Morgan Gua anty Trust Company of New York a d Salomon Brothers and Hutzler 5.85% Bankers Tr st Company per First Bank and T ust Company of South Bend 5.92% Principal Premium Amount $1,120,000.00 -0- 1,120,000.00 32.00 1,120,000.00 19.00 1,120,000.00 Chase Manh ttan Bank and Lehman Brothers 5.97% 1,120,000.00 NOW, THEREFORE, BE IT RESOLVED by the Local Issuing Agency as follows: 27.00 13.00 Section 1. The aforesaid publication of the Notice of Sale and the form and contents t ereof as so published are hereby, in all respects, approved, ratified and confi ed. Section 2. In order to provide funds to pay expenses incurred or to be in- curred in the development of the Project, or to refund, renew or extend its outstanding Notes issued in connection therewith, the Local Issuing Agency hereby determines to borrow the sum of One Million One Hundred Twenty Thousand DollArs ($1,120,000.00) and issue its negotiable Project Notes therefor. Section 3. The Local Issuing Agency hereby ratifies and approves the form of each proposal hereinafter in this Section 3 enumerated for the purchase of the designZLted principal amount of Notes and determines that each such proposal offers to purchase such Notes at the lowest interest rate and is therefore accepted, and said Notes are hereby awarded to the purchaser, as follows: Principal Amount Interest Rate Purchaser $1,120,000.00 5.18% National Bank and Trust Company of of South Bend South Bend, Indiana Section 4. Each Note shall be dated August 5, 1969, shall be payable as to both principal and interest to bearer, on March 6, 1970, and, pursuant to each roposal for the purchase of said Notes hereinabove accepted, shall bear the rate of interest per annum, payable at maturity; shall bear the numbers and be in the denominations; and shall be payable as to both principal and inte est at the incorporated bank having trust powers or incorporated trust company, as follows: Purchasex Numbers Denominations Interest Payable At Rate National Bank and 1 - 11 $100,000 5.18% National Bank and Trust Company of 12 - 13 10,000 Trust Company of South *d South Bend South Be d, Indiana South Bend, Indiana None of such Notes shall be valid until after the bank or trust company at which it is payable shall have signed the agreement, appearing on each Note, to act as paying agent thereof. Each such Note shall be executed in the name of the Local Issuing Agency by the manual or facsimile signature of the Mayor of South Bend and shall have the corporate seal of said City impressed, imprinted or reproduc d thereon and attested by the City Clerk of the City of South Bend, and said officers are hereby authorized and directed to cause said Notes to be prope ly executed. Section 5. Each such Note shall be in substantially the form of HUD -9010, which is incorporated herein by reference, and shall be secured by an agreement entitled "Requisition Agreement No. 1" (herein called the "Requisition Agree- ment"), in substantially the form of HUD -9003, which is incorporated herein by reference, to be entered into between the Local Issuing Agency and the Governme t. Section 6. The Requisition Agreement shall be executed in the name of the Local Issuing Agency by the manual or facsimile signature of the President of the Local Issuing Agency and shall have the corporate seal of the Local Issuing Agency impressed, imprinted or reproduced thereon and attested by the Secretary, and said officers are hereby authorized and directed to cause the Requisition Agreemen to be properly executed. Secti the New promises the Requ Agreemen hereby a holders and amou of Pro j e Obligati with the principa Such plec or invest n 7. For the punctual payment of the principal of and interest on roject Notes, the Local Issuing Agency hereby expressly and irrevocably to pay any sums which may be received from the Government pursuant to sition Agreement relating to such series of Project Notes and said , when executed by the Government, is hereby declared to be and is signed by the Local Issuing Agency for the benefit of the holder or rom time to time of the New Project Notes. All contributions, funds is authorized or required by the Contract to be applied to the payment t Loan Notes (referred to in the Contract as "Project Temporary Loan ns ", "Advance Notes" or "Permanent Notes ") as issued in connection Project are hereby irrevocably pledged to secure the payment of the of and interest to maturity on the New Project Notes. e and the lien created thereby shall cease and terminate when monies ent securities convertible into cash not later than the maturity -2- date of t e New Project Notes, sufficient and for the purpose of paying the principal and interest to maturity on such Notes, are deposited with the paying ag nt or agents for such Notes. Section 8. The proceeds derived from the sale of the New Project Notes, together with such amount of other funds of the Local Issuing Agency as may be necessary, shall be applied, simultaneously with the receipt of said proceeds, in accordance with the provisions of the Requisition Agreement. Section 9. The Treasurer of St. Joseph County Ex* is hereby authorized and directed o send promptly a letter to each paying agent for the New Project Notes in substantially the form of HUD -9004, which is incorporated herein by reference and to transmit therewith (a) the New Project Notes for which the addressee is the paying agent for delivery and payment and (b) a signature certifica a and receipt, in accordance with the terms of said letter, and to take such other actions as may be required to. complete the delivery transaction in accord nce with the terms of the letter to the paying agent. Adopted a Office of 1001, Sou 10. This Resolution shall take effect immediately. the Regular Meeting of the Redevelopment Commission held at the the Department of Redevelopment, 12 West LaSalle Avenue, Suite :h Bend, Indiana, on July 11, 1969. A. Wiggins; ,frfisident ATTEST John henney, SEAL * Of Treasurer of the City of South Bend -3-